S&P 500 Performance and Risk Appetite Indicator This chart suggests that the S&P 500 has historically recovered, after the Risk Appetite Indicator falls below -2. Image: Goldman Sachs Global Investment Research
CS Global Risk Appetite Index The Credit Suisse Global Risk Appetite Index falls, but is not at panic level. Image: Credit Suisse
Fed Dovish Pivot – Stimulus Hopes Support Risk Appetite Growth sentiment appears to be stabilizing, due to optimism about fiscal policy. Image: Goldman Sachs Global Investment Research
Risky vs. Safe Assets Fund Flows Investors’ continued tilt toward riskier assets signals growing confidence in the markets and the broader economic outlook, alongside a clear appetite for capital growth and higher returns. Image: Goldman Sachs Global Investment Research
Global Risk Sentiment Indicators Sentiment indicators suggest a “Goldilocks” scenario for risk appetite—investors are moderately optimistic, cautiously taking on risk without exuberance. Image: TS Lombard
FMS Investors – Net % Taking Higher than Normal Risk Levels In September, FMS risk appetite has significantly decreased, reaching a 11-month low. This decline reflects growing concerns among FMS investors regarding economic stability and market conditions. Image: BofA Global Fund Manager Survey
Sentiment – Global Risk Demand Index The Morgan Stanley Global Risk Demand Index indicates that investors’ risk appetite is very low, which can often be seen as a contrarian indicator, where extreme pessimism might signal a potential rebound in equity markets. Image: Morgan Stanley
S&P 500 Sector P/E Valuations Relative to History Risk appetite remains alive and well, with many S&P 500 sectors still trading at valuations far above their historical averages. Image: Goldman Sachs Global Investment Research
Different Market Sentiment Indicators Risk appetite is climbing, fueled by strong global equity inflows. The momentum could hold as long as markets stay clear of big surprises. Image: Goldman Sachs Global Investment Research
Discretionary Investors Equity Positioning vs. S&P 500 EPS Growth Discretionary investors are bracing for a sharp slowdown in earnings growth that’s increasingly hard to square with the data. If that gloom lifts, risk appetite could snap back and drive equities higher. Image: Deutsche Bank Asset Allocation
S&P 500 and Global Central Bank Rate Cuts With most central banks cutting rates or holding steady over the past six months, the easy policy mood has helped lift risk appetite and pushed markets like the S&P 500 higher. Image: Bloomberg